Question

Explain what is ‘public interest’ and how does it relate to the auditor’s code of ethics?
explain briefly please

Answer 1

What is public interest ?

Public interest is the welfare of general public .the term stands against the selfish interest of a person, firm or a group .public interest should be considered as the primary factor in the decision making process , by comparing the expected gains and potential costs of certain projects , policies , decisions etc..

a company that makes decisions that are in the best public interest always can keeps its reputation .for example , if the company is going to take a project that have the potential to make huge profits , it should consider factors like environmental issues related to undertaking the project instead of just considering the profit .while considering so , the company is acting in the public interest instead of acting only in the company's interest.

how does public interest relates to auditors code of ethics ?

An auditor is perceived as an agent acting in the public interest .being unbiased is the basis of the auditors code of ethics. an auditor should not act in the interest of a firm, a person or a group .auditor should always act in the interest of the public .an auditor sholud always be unbiased because the auditor is and always will be an agent of trust .public trust is deeply connected with the auditing process. growing mistrust in the auditing process will lead to the questioning of auditor's role and the public welfare .